CEE Bonds

The Republic of Turkey has returned for a bond in euros after the $2bn note it sold earlier this month rocketed in value.

Emerging market investors are enjoying an excellent start to the year in the secondary market, but primary supply has not maintained its strong start to the year. Bankers and investors are confident that issuers will get moving soon though.

Backed by a resilient and toughened banking system, Turkish debt could be one of the most rewarding investments in loan and bond format alike. As the country recovers from the currency crisis of August 2018, it is high time for those still standing on the platform to board the Turkish train.

US sanctions on EN+ and Rusal look set to be lifted soon, but they have not been the failure that some emerging market investors claim.

A €5bn wall of demand chased a trio covered bonds issued on Monday by Société Générale, PKO Bank Hipoteczny and Deutsche Pfandbriefbank and showed that, after a shaky start to 2019, the market has now found form.

Rating: B1/—/BB-

Emerging market corporate borrowers have little in the way of funding needs and, where they do expect to issue, are eyeing new formats to diversify rather than issuing more Eurobonds.

The US Senate on Wednesday rejected legislation that would keep sanctions on companies linked to Russian oligarch Oleg Deripaska, including aluminium firm and bond issuer Rusal and London-listed energy company En+. Although many investors and bankers are hailing this as a victory for Russia that could reopen the international capital markets for its issuers, others are concerned that it makes further US sanctions against other Russian entities more likely. Francesca Young and Sam Kerr report.

Turkey’s export-import bank (Turk Eximbank) raised $500m with a five year bond on Wednesday, becoming the first Turkish borrower, apart from the sovereign itself, to access the market since the lira crisis. The deal benefitted from a relief rally following a Turkish central bank meeting on Wednesday.

Turkey’s export import bank raised $500m on Wednesday, returning to the bond market for the first time since the Turkish currency crisis in 2018, benefiting from a relief rally following the Turkish central bank meeting on Wednesday.

The Turkish Central Bank kept interest rates unchanged at its meeting on Wednesday – a great relief to investors who feared the country might make another monetary policy misstep.

Turk Eximbank has released initial price guidance for a $500m five year senior unsecured bond.